U.S. Housing and Urban Development Secretary Shaun Donovan announced on Tuesday that first-time homebuyers will be eligible to use the federal government’s $8,000 tax credit as a down payment with FHA mortgage loans. At the National Association of Realtor’s Midyear Legislative Meetings & Trade Expo in Washington, D.C., Donovan said, “We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a down payment.”
According to Donovan, FHA will release the details around the new program soon. It is believed that FHA will allow borrowers the benefit of using the $8,000 tax credit up front as a bridge loan, with borrowers simply paying it back to FHA when the tax credit is officially received in their tax refunds.
The IRS has a rule pertaining to the tax credit that bars taxpayers from authorizing another party to receive their funds. However, there are many interested parties working on a resolution to this issue concerning the IRS. By turning the $8,000 tax credit into a type of down payment assistance, first-time homebuyers are being provided yet another opportunity to take advantage of the near-historically low current mortgage rates.
Because FHA loans were essentially discounted with the upsurge in sub-prime mortgage loans in recent years, Americans are again turning to FHA to help their dream of homeownership become a reality.
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fha streamline refinance
September 27, 2009 @ 12:46 pm
fha streamline refinance…
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